21 Scams Used By Devious Car Dealers  And How To Avoid Them

Buying a new or used car can be a harrowing process: There's a lot of paperwork, a lot of information buyers are likely not to have, and a lot at stake.

The last thing car shoppers need is a salesperson using tricks and scams to increase their own bottom line, as the expense of the customer.

To help potential buyers avoid overpaying for a lemon, or even a new car, Gregg Fidan, the founder of RealCarTips.com and the author of Honest Guide to Buying a Car, has compiled the Ultimate List of Car Buying Scams, including 112 tricks unscrupulous car dealers rely on to bilk their customers.

From those 112, we've selected the 21 most common, costly, and devious scams, and included with Fidan's tips on how to detect and avoid them.

Lies, Lies, and More Lies

The Scam: The majority of car salesmen I interacted with have lied about small things: That color is not available; there's only three left state-wide; the price is good only for today; someone else is interested in the car, better decide quickly, etc.

What To Do: Take your time and be patient when shopping for a car. Don't rush into anything, especially based on what a salesman tells you. Just treat salesmen fairly and take everything they say with a grain of salt.

Republished with permission from The Ultimate List of Car Buying Scams

Shell Games

The Scam: The salesperson finds out what your hot buttons are and exploits them. If you have a trade-in, and they know you want a certain price for it, they will offer you what you want, but at the same time will raise the price of the new car.

If they know you want a certain monthly payment, they'll make sure you get that, but they will extend the loan term so you end up paying more over the long-term. There are all kinds of shell games that happen at dealerships.

What To Do: Negotiate each portion of your car purchase separately. Shop your trade-in to multiple dealers, shop for an auto loan among multiple lenders, compare new car prices with multiple dealers. Don't let them bundle everything into one big deal.

Republished with permission from The Ultimate List of Car Buying Scams

Bait and Switch

The Scam: The dealer advertises a car with a great price, but when you show up at the dealership, they say it's already been sold. They then try to get you to buy a more expensive vehicle.

The whole point of a bait-and-switch ad is to get you to the showroom.

What To Do: Call the dealership just prior to visiting to confirm they still have the vehicle in stock. If so, ask them to email or fax you a signed statement indicating that the vehicle is still in stock and available for sale.

If they try to pull a bait and switch on you after that, you will have proof.

Republished with permission from The Ultimate List of Car Buying Scams

Focusing on Monthly Payments

The Scam: "If I could get you in this car for $350 per month, would you take the car today?" This is a common sales tactic: getting you to focus only on the monthly payment. Dealers can hide all sorts of lucrative back end products in a monthly payment and you would never know.

It's easy for a dealer to get you practically any monthly payment you want — all they have to do is extend the car loan or low-ball you on the trade-in, or any number of other tricks. This is one of the most common and profitable sales tactics.

What To Do: Always negotiate based on the actual price of the vehicle and always separate each part of the transaction into a separate negotiation. This includes your trade-in, and any other products or services you purchase.

Republished with permission from The Ultimate List of Car Buying Scams

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